Zattoo, which officially launched in the UK in December, attracted attention last week when a media report said major broadcasters were angry about the service and were consulting lawyers.

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The service streams the channels over the internet as they are broadcast using a peer-to-peer application, allowing users to watch live TV without conventional receiver equipment. The company has always insisted it is entirely legal and ensures all programme rights are cleared.

Alexandra Illes, manager of Zattoo UK, said broadcasting and copyright legislation in the UK provides for public service channels to be rebroadcast without the agreement of operators. The BBC also has its own policy on syndication.

She said that as a "one to many" broadcaster, unlike video on demand services, Zattoo was not required to agree rights with content producers.

Illes said that now Zattoo was carrying all the main UK terrestrial channels, it would seek to build its public profile.

There had been a delay for the carriage of BBC One, Two and ITV because of their regional variations, she said. Zattoo is now carrying four regions and plans to add more in the future.

Channel 4 and the BBC have said they have no formal agreement with Zattoo. The BBC has also carried out trials around linear internet syndication and is currently reviewing its policy in the area.

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